$12m LPG Plant Begins Operations, 2019

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L-R: General Manager, Contracting and Procurement, Shell Petroleum Development Company (SPDC), Anthony Elis, Director, Monitoring and Evaluation of the Nigeria Content Development and Monitoring Board, Tunde Adelana, Managing Director, Shell Nigeria Exploration and Production Company (SNEPCo), Bayo Ojulari, Manager Project, Gas Division, National Petroleum Investment Management Services, Jubril Lawal, and the Vice Chairman, Petroleum Technology Association of Nigeria (PETAN), Wole Ogunsanya, at the 2018 SNEPCo Nigerian Content Exhibition in Lagos… recently.

Barring the unforeseen, the $12 million Liquefied Petroleum Gas (LPG) plant currently under construction in Ikuru in Rivers State, by Green Energy International Limited (GEIL), operator of Otakikpo Marginal field in OML 11, will become operational by the second quarter of 2019.
The 12MMSCFD capacity plant which Approval To Construct (ATC) was issued by the DPR in August this year sequel to successful submission of the Detailed Engineering Design (DED) is being constructed in China at a cost of over $12 million.
The Chairman of the company, Professor Anthony Adegbulugbe, who made the disclosure at the first stakeholders’ interactive luncheon held in Port Harcourt, said the project was strategically designed by the company to ensure zero-gas flaring in the Niger Delta, under its Small Scale Gas Utilisation Programme (SSGUP).
According to him, the project would guarantee the host communities of uninterrupted power supply through the company’s gas-to-power project, with six megawatts gas generators already on site for installation.
He added that the company had secured a 15-megawatt power generation licence from the National Electricity Regulatory Commission (NERC), noting that efforts were being made to increase the power generation to 40 megawatts.
On the company’s Phase 2 developmental plans, Adegbulugbe said the firm had just completed a 3-D seismic campaign to understand the field with a view to drilling more wells in the area, while an onshore export terminal was also being proposed to be established by 2020.
He said the company, which started production in 2017, was producing 6000bopd, adding that it planned to ramp up production to 20,000 bopd in the next few years.
He commended the traditional rulers and people of the area for their support and cooperation with the company in achieving tremendous progress, adding that this was a proof that its unique programme of taking the communities as partners in its development effort was not misplaced.
He said the company and its technical partner, Lekoil, had patronised local community contractors since its inception with over N3 billion worth of procurement contracts which had contributed to economic development of the people.
Also most of the skilled and unskilled personnel were drawn from the communities and the larger Niger Delta area, he said.